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Text size [+][-]  Monday March 15 2010GLOBAL EDITION

Considered view
28 Oct 2008 18:11

Steer clear

Context News

General Motors chief executive Rick Wagoner is leading a lobbying effort to secure federal aid for the ailing car maker, according to press reports. Wagoner could be looking for $10bn-$12bn to help fund a GM acquisition of fellow struggler Chrysler.

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The cash-burning carmaker is seeking up to $12bn in federal aid to fund a Chrysler merger. But unlike banks, GM’s woes are chronic. If lawmakers do have to stump up cash, it shouldn’t be to stave off bankruptcy: it should be to fund Detroit’s Chapter 11 reorganisation.

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